9.

Explain Employee Relations Workforce Composition and Trends

The SHRM process starts with the identification of the organization’s purpose, mission, and business
unit, as defined by the board of directors and the senior management team. The process ends with HR
serving as a strategic partner to the operating departments. Under this view of human resources
management, the HR manager’s job is to help operating managers achieve their strategic goals by
serving as the expert in all employment-related activities and issues.

Environmental assessment

A crucial element of strategic human resources management in which an organization reviews the
changes in the legal and regulatory climate, economic conditions, and labor market realities to
understand current opportunities and threats.

Knowing internal strengths and weaknesses allows managers to develop plans based on an accurate
assessment of the organization’s ability to perform as desired in the marketplace.

Sensitivity: Internal
 Mission

A statement created by an organization’s board and senior managers specifying how the organization
intends to manage itself to fulfill its purpose most effectively.

Purpose

An organization’s basic reason for existence.

SWOT analysis.

The first step in formulating a corporate and business strategy is doing an analysis of the organization’s
strengths, weaknesses, opportunities, and threats—a SWOT analysis.

Organization Strategy:

Most organizations formulate strategy at three basic levels: corporate, business, and functional.

A corporate-level strategy can be used by a small business to increase its profits over the next fiscal
year, whereas a large corporation might be overseeing the operations of multiple businesses to achieve
more complex goals like selling the company or entering a new market. This level of strategy is only
necessary when the company operates in two or more business areas through different business units
with different business-level strategies that need to be aligned to form an internally consistent
corporate-level strategy. That is why corporate strategy is often not seen in small-medium enterprises
(SME’s), but in multinational enterprises (MNE’s)

A business strategy is the combination of all the decisions taken and actions performed by the business
to accomplish business goals and to secure a competitive position in the market. It is primarily
concerned with how a company will approach the marketplace - where to play and how to win.Where to
play answers questions like, which customer segments will we target, which geographies will we cover,
and what products and services will we bring to market.How to win answers questions like, how will we
position ourselves against our competitors, what capabilities will we employ to differentiate us from the
competition, and what unique approaches will we apply to create new markets

Functional-level strategy is concerned with the question “How do we support the business-level
strategy within functional departments, such as Marketing, HR, Production and R&D?”. These strategies
are often aimed at improving the effectiveness of a company’s operations within departments.

Example: Samsung.Samsung sells smartphones, cameras, TVs, microwaves, refrigerators, laundry

machines, and even chemicals and insurances. Each product or strategic business unit needs a business
strategy in order to compete successfully within its own industry. However, at the corporate level
Samsung has to decide on more fundamental questions like: “Are we going to pursue the camera
business in the first place?” or “Is it perhaps better to invest more into the smartphone business or
should we focus on the television screen business instead?”.

HR Strategy Formulation and Implementation

After the organization’s corporate and business strategies have been determined, managers can develop
an HR strategy.

Sensitivity: Internal
 Strategy Formulation: Thinking,

Strategy Implementation:

Thinking->Action

Ex: resource allocate, training

This strategy commonly includes a staffing strategy (planning, recruitment, selection, and placement), a
developmental strategy (performance management, training, development, and career planning), and a
compensation strategy (salary structure and employee incentives). Formulating an aligned strategy
necessitates asking the following questions:

◆ What types of individuals do we need to attract and retain?

◆ How shall we develop and reward these individuals to better enhance

employee productivity?

Staffing Strategy

A set of activities used by an organization to determine its future human resources needs, recruit
qualified applicants with an interest in the organization, and select the best of those applicants as new
employees.

Developmental strategy

A set of methods that facilitate the enhancement of an organization’s human resources’ quality. Must
be consistent with corporate and business strategies.

Compensation Strategy

The set of rewards that organizations provide to staff in exchange for their performance of various
organizational tasks and jobs.

Workforce Composition

The demographics of the workforce, including factors such as gender, age, ethnicity, marital status, and
disability status.

The best strategic HR plans may fail when specific HR programs and tactics are poorly chosen and
implemented. They are more likely to be successful when they are compatible with the business
strategy, environment, organization characteristics, and HR capabilities. The HR strategy
implementation requires motivational and communication processes, goal setting, and leadership.
Specific practices or tactics, such as training, are also necessary to implement the HR strategy. Methods
for implementation also need to be chosen. For example, should the training be provided in-house or
externally? How will each employee’s success in applying the principles learned be measured and
rewarded? The answers to such questions provide the specific tactics needed to implement the HR
strategy.

Sensitivity: Internal
 HR Outcomes and Performance

An organization should provide its workforce with job security, meaningful work, safe conditions of
employment, equitable financial compensation, and a satisfactory quality of work life. Organizations
cannot attract and retain the number, type, and quality of professionals required to deliver quality
health services if the internal work environment is unattractive. Employees are a valuable stakeholder
group whose concerns are important because of the complexity of the service they provide. Job
satisfaction, commitment to the organization, employee engagement, motivation, level of job stress,
and other constructs are the usual measures of employee attitude and HR outcomes.

These organizational outcomes feed back into both internal and environmental characteristics, and the
whole process is continuous, evolving, and changing.

Ref: https://www.business-to-you.com/levels-of-strategy-corporate-business-functional/

https://www.business-to-you.com/levels-of-strategy-corporate-business-functional/

12.Explain recruitment process. Give current examples of advantages and

disadvantages of outside recruiters, Social Media, and Campus recruiting.
HRM or HR for short, is the function of people management within an organization. Recruitment is the
first step in building an organization's human capital. Recruitment refers to the process of identifying,
attracting, interviewing, selecting, hiring, and onboarding employees. In other words, it involves
everything from the identification of a staffing need to filling it.

At a high level, the goals are to locate and hire the best candidates, on time, and on budget. At a high
level, the goals are to locate and hire the best candidates, on time, and on budget.

Before company’s recruit, they must implement proper staffing plans and forecasting to determine how
many people they will need.

Forecasting is based on both internal and external factors.

Internal factors include the following:

• Budget constraints
• Expected or trend of employee separations.
• Production levels
• Sales increases or decreases.
• Global expansion plans

External factors might include the following:

• Changes in technology
• Changes in laws

Sensitivity: Internal
 • Unemployment rates
• Shifts in population.
• Shifts in urban, suburban, and rural areas.
• Competition

Once the forecasting data are gathered and analyzed, the HR professional can see where gaps exist and
then begin to recruit individuals with the right skills, education, and backgrounds.

This section will discuss this step in HR planning.

Although it might seem easy, recruitment of the right talent, at the right place and at the right time,
takes skill and practice, but more importantly, it takes strategic planning.

Based on this information, when a job opening occurs, the HRM professional should be ready to fill that
position. Here are the aspects of developing a recruitment strategy:

• Refer to a staffing plan.

• Confirm the job analysis is correct through questionnaires.
• Write the job description and job specifications.
• Have a bidding system to recruit and review internal candidate qualifications for possible
promotions.
• Determine the best recruitment strategies for the position.
• Implement a recruiting strategy

➢ The first step in the recruitment process is acknowledgment of a job opening. Currently, the
manager and/or the HRM look at the job description for the job opening (assuming it is not a
new job).
➢ The job analysis is a formal system developed to determine what tasks people perform in their
jobs. The purpose of a job analysis is to ensure creation of the right fit between the job and the
employee and to determine how employee performance will be assessed.
➢ To start writing a job analysis, data need to be gathered and analyzed. The information gathered
from the job analysis is used to develop both the job description and the job specifications. A job
description is a list of tasks, duties, and responsibilities of a job. Job specifications, on the
other hand, discuss the skills and abilities the person must have to perform the job.A job
analysis must be performed first, and then based on that data, we can successfully write the job
description and job specifications.
➢ Two types of job analyses can be performed: a task-based analysis and a competency- or skills-
based analysis. A task-based analysis focuses on the duties of the job, as opposed to a
competency-based analysis, which focuses on the specific knowledge and abilities an employee
must have to perform the job. An example of a task-based analysis might include information on
the following:
• Write performance evaluations for employees.
• Prepare reports.
• Answer incoming phone calls.
• Assist customers with product questions.

Sensitivity: Internal
 • Cold-call three customers a day.

With task job analysis, the specific tasks are listed, and it is clear. With competency based, it is
less clear and more objective. However, competency-based analysis might be more
appropriate for specific, high-level positions. For example, a competency-based analysis might
include the following:

• Able to utilize data analysis tools.

• Able to work within teams.
• Adaptable
• Innovative

➢ Once you have determined how you will conduct the analysis, a tool to conduct the analysis
should be chosen. Most organizations use questionnaires (online or hard copy) to determine the
duties of each job title. Some organizations will use face-to-face interviews to perform this task,
depending on time constraints and the size of the organization.
➢ Once the job analysis has been completed, it is time to write the job description and
specifications, using the data you collected. Job descriptions should always include the following
components:

• Job functions (the tasks the employee performs)

• Knowledge, skills, and abilities (what an employee is expected to know and be able to do, as well
as personal attributes)
• Education and experience required.
• Physical requirements of the job (ability to lift, see, or hear, for example)
➢ Once the job description has been written, obtaining approval from the hiring manager is the
next step. Then the HR professional can begin to recruit for the position

Advantages and disadvantages of outside/external recruiters

External recruitment is the assessment of an available pool of job candidates, other than existing staff,
to see if there are any sufficiently skilled or qualified to fill and perform existing job vacancies.

Advantages of Recruiting Externally

➢ When an organization recruits externally, it opens the organization up to a larger pool of

applicants, which increases its chance of finding the right person for the job.
➢ External recruitment provides an opportunity for a fresh outlook on the industry that a company
may need to stay competitive.
➢ Bringing in fresh talent from the outside can help motivate the current employees to produce
and achieve more in hopes of obtaining the next promotional opportunity.
➢ Looking outside the organization also allows a company to target the key players that may make
its competition successful. Hiring a candidate with a proven track record for the competition
allows the company to get an insider's view as to what the competition is doing to be successful.
This gives the organization a chance to stay a step ahead of the competition.

Sensitivity: Internal
 ➢ Hiring an external candidate also opens many opportunities to find experienced and highly
qualified and skilled candidates who will help a company meet its diversity requirements.

Disadvantages of External Recruiting

There are some potential disadvantages of hiring an external candidate:

➢ It can take longer and cost more than hiring from within the organization.
➢ It can also damage employee morale because current employees may feel this lessens their
chances for promotion. When employee morale decreases, productivity can also decrease.
➢ It also takes more time to train an external candidate on the systems the organization uses;
therefore, taking the candidate a little longer to get up and running.
➢ It can be difficult to tell by a candidate's information whether he or she will fit in with the
company and its employees. While a new employee may bring fresh outlooks and ideas, this can
be considered a disadvantage, because these ideas may produce conflict with current
employees.

Advantages and disadvantages of Social Media

Social media formats have changed the way we do everything, from interacting with friends and family
to searching for employment opportunities.

Advantages of Social Networking

➢ The main pro of social media for job hunting is in the medium's ability to reach a wide and
targeted range of people. This approach allows you to significantly expand your search and open
yourself to a wealth of possibilities.
➢ Social media is fast, efficient, and easy to use.
➢ Social networking is inexpensive when compared to other more traditional job search mediums.
➢ Social media has a compounding effect. Your posts can be shared repeatedly, expanding your
reach beyond your own personal and professional networks.
➢ Another pro of social networking as part of a job search is that employers are using the medium
to find qualified candidates as well.

Disadvantages of Social Networking

➢ The same circumstances that create disadvantages in the world of personal social media use can
apply to the business world as well.
➢ There is a lack of control over what others say about your postings, which could create an
unprofessional online image.
➢ There is a chance that business and personal worlds can unintentionally or mistakenly overlap if
you are not careful about who can see your professional queries versus personal news.
➢ Some traditional professions might not embrace the informality of using social media to find a
job.
➢ Fortunately, planning, and careful execution can help you embrace the pros of social networking
while mitigating the disadvantages.

Sensitivity: Internal
 Advantages and disadvantages of Campus recruiting.

Advantages of Campus Recruitment

➢ The companies will be benefited from getting wide choice of candidates to select for different
job posts. Companies can select the right and talented candidate from a vast pool of young
applicants within a limited time. On the other hand, students have the advantage of getting a
good job according to their qualification level even before the completion of their academic
course in college.
➢ Campus recruitment helps in saving time and efforts of the companies. The entire campus
recruitment process from a college is not a tedious toil. It prevents the occurrence of unusual
expenditures related to recruitment process such as advertisement, initial screening, and final
selection procedures etc. This in turn turns to be useful in reduced manpower effort and time as
well.
➢ An organization through effective campus recruitment finds an opportunity to establish a link
with the next batch of students. This in turn paves way to serve the future and long-term
recruitment needs of the company. Students participating in internships and summer training
programs may have direct recruitment to different job positions offered by the company.
➢ Campus recruitment helps in increased selection ratio. More number of quality candidates can
be selected through this recruitment process.
➢ The organizations can build up more company loyalty through campus selection process. Fresh
and talented graduates will work more closely with their first company. Hence, this in a way will
increase the brand loyalty among different applicants.

Disadvantages of Campus Recruitment

➢ Campus recruitment is an expensive affair for majority of the companies as it adds up costs to
the bottom line. Companies incur different expenses related to travel, boarding, training etc
while conducting campus selection process.
➢ The experienced and skilled candidates having practical job exposures cannot be recruited
through campus placements. Fresh candidates selected through campus placements require
adequate training for work. This is an additional expense for the company.
➢ Also, students cannot work with their dream company and will have to remain satisfied with
the company that recruits them during campus selection. http://entrance-exam.net/campus-
recruitment-advantages-and-disadvantages/

Ref:

https://open.lib.umn.edu/humanresourcemanagement/chapter/4-1-the-recruitment-process/
https://study.com/academy/lesson/external-recruitment-advantages-disadvantages-methods.html

https://work.chron.com/advantages-disadvantages-social-networking-job-hunting-27557.html

http://entrance-exam.net/campus-recruitment-advantages-and-disadvantages/

Sensitivity: Internal
 13. Explain staffing, retention, Compensation, and benefits administration in the
role of HRM
Staffing:

Staffing is the process of hiring eligible candidates in the organization or company for specific positions.
Staffing can be defined as one of the most important functions of management It involves the process of
filling the vacant position of the right personnel at the right job, at right time.

Functions of Staffing

➢ The first and foremost function of staffing is to obtain qualified personnel for different jobs
position in the organization.
➢ In staffing, the right person is recruited for the right jobs, therefore it leads to maximum
productivity and higher performance.
➢ It helps in promoting the optimum utilization of human resource through various aspects.
➢ Job satisfaction and morale of the workers increases through the recruitment of the right
person.
➢ Staffing helps to ensure better utilization of human resources.
➢ It ensures the continuity and growth of the organization, through development managers’ filling
the vacant position of the right personnel at the right job, at right time.

Retention:

Employee Retention is a process in which the employees are encouraged to remain with the
organization for the maximum period of time or until the completion of the project. Employee retention
is beneficial for the organization as well as the employee. Retention of employees is part of Human
Resource management and planning efforts. Turnover, as the opposite of retention, often has been seen
as a routine HR matter requiring records and reports.An organization can’t survive if the top performers
quit.

The Human Resource team plays an important role in employee retention. Let us find out their role in
the same:

➢ Exit Interview − Everyone needs a job for their livelihood and for their future prospectus. So, no
employee leaves his/her job without a reason. If an employee wants to leaves his/her job and
resigns from his present assignments, then it is the responsibility of the HR department to
interview the respective employee and find out the reason for leaving the job and the
organization immediately. There could be various reasons for the employee to leave his/her job
and the major reasons could be conflict with boss, no good work environment, lack of growth
and lesser salary etc.

➢ Finding the Reason for Leaving − Finding the reason, why an employee is leaving the
organization is very important and should be known for avoiding future employee exits. Hiring is
a tedious process and it is really very difficult to recruit the right candidate and train him once

Sensitivity: Internal
 again. Do check the track record of the employee who wishes to move on. It is really essential
for the management to retain those employees who have the potential and are really
indispensable for the organization.
➢ Hiring the Right Resource − The HR person must ensure that he is recruiting the right employee
who actually fits into the role. A right person doing the wrong job would never find his job
interesting and certainly look for a change. Make sure every individual has been assigned
responsibilities according to his specialization and interest.
➢ Employee Motivation − The human resource department must conduct motivational activities
at the workplace. Organize various internal as well as external trainings which help the
employees to learn something extra apart from their routine work. Make them participate in
extracurricular activities important for their overall development. Encourage them to interact
with each other so that the comfort level increases.
➢ Reward the Performers − The HR must launch various incentive schemes for the top performers
to motivate them. This way the employees feel important for the organization and strive hard to
perform even better the next time. The employees who show promise should be awarded with
cash prizes, lucrative perks and certificates to make the individual stand apart from the crowd.
➢ Job Rotation − Performance reviews are a must. The HR along with the respective team leaders
must monitor their team member’s performance to ensure whether they are enjoying the work
or not. The employees look for a change only when their job becomes monotonous and does
not offer any growth or learning. Job rotation can be one of the effective ways to retain
employees.

Compensation, and benefits administration in the role of HRM

Compensation and benefits refers to the compensation/salary and other monetary and non-monetary
benefits passed on by a firm to its employees. Compensation and benefits is an important aspect of
HRM as it helps to keep the workforce motivated. It helps give benefits to employees based on their
performance and actions and brings the best out the employees at workplace.

Importance of compensation and benefits

Companies hire people individual to achieve their organizational goals and people join companies to
earn money & build their career. One of the biggest factors why people join companies in the
compensation and benefits, salaries, perks, incentives etc. which is given to them. Apart from the
company's reputation and job profile, the money offered as a salary is pivotal in attracting people to
work for the organization. The more the compensation and benefits offered to employees, the more is
their loyalty, motivation to work and do well. However, companies which offer lesser salaries see a high
attrition rate and less productivity from employees. All these factors help in making compensation and
benefits an important factor in managing workforce. Salaries of employees are defined by several
parameters like experience, education background etc. In senior management, skills like team
management, communication management, leadership, time management etc. are also considered
while finalizing the pay package.

Difference between compensation and benefits

Both the factors are important in motivating employees for doing their work and paying them for the
services they are doing for the company. However, there is a slight difference between compensation

Sensitivity: Internal
 and benefits. Compensation is completely related to the money which is being paid to an employee i.e.
salary. bonuses etc. On the other hand, benefits are the non-monetary incentives given to employees
like health benefits for which the employee does not have to pay.

Compensation and Benefits Example

A company offers a salary package to an employee which has both compensation structure and benefits
plans. The compensation plan would entail the components like fixed pay etc. and benefits would
include medical insurance and work from home etc.

Ref:

https://www.toppr.com/guides/business-studies/staffing/introduction-to-staffing-and-its-meaning/

https://www.tutorialspoint.com/employee_retention/employee_retention_the_role_of_hr.htm

https://www.mbaskool.com/business-concepts/human-resources-hr-terms/4032-compensation-a-
benefits.html

Sensitivity: Internal